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Financial Well-Being

Financial Well-Being

Financial Well-Being | Key Trends

How easy is it for Delawareans to support themselves and their families? How does poverty in our state compare to the rest of the nation and similar areas? The indicators in this section show a state with falling incomes and rising poverty but still more prosperity than the nation and comparable regions.

Households Receiving Temporary Assistance

People Receiving Food Stamps

As in many parts of the country, incomes in Delaware, after adjusting for inflation, have fallen over the past decade. The median household income fell 10% since 2000 statewide and 12% in New Castle County. Yet Delaware’s median income of $60,500 is higher than the nation or comparable regions.

But that relative prosperity is not evenly distributed – median incomes are lower in some places and among some groups. In Wilmington, for example, the median income of $40,500 is 67% of the state median. Statewide, median incomes among African American ($47,200) and Hispanic ($45,700) households are also significantly lower than the overall state median.

Yet, by one measure, Delaware’s income inequality is less severe than the nation’s. Our ratio of incomes at the 80th percentile to those at the 20th percentile is 4.4, below the national ratio of 5.0 and the same or lower than comparable regions.

Delaware’s poverty rate of 12% is up 3 percentage points since 2000 and higher in the cities of Dover and Wilmington (19% and 26%, respectively). But the nation and two of three comparable regions had higher poverty rates. As with income, disparities in poverty are striking, with 19% of African American residents and 24% of Hispanic residents living in poverty.

The affordability of housing is becoming an increasingly important issue within the state. Homeownership rates decreased slightly since 2000, at 71%, while the median value of a home has increased by 33% over the same period. At $231,500 in 2011-15, the median value of a home in Delaware is considerably higher than the national median of $178,600.

Delaware’s ratio of home value to income rose 45% to 3.2 in 2011-15, above the 2-3 range considered affordable. Delaware was considerably less affordable than the nation in 2011-15, which had a home value to income ratio of 2.6.

Rental units are also becoming increasingly costly for residents of Delaware. In 2000, 25% of the median household income of renters went to pay for rent, below the 30% threshold that is generally agreed to be the measure of whether or not housing is affordable. By 2011-15, that rate had climbed to 32%, mirroring a national increase. Whether they rent or own, Delaware residents are spending an increasing amount of their income on housing, which can displace other types of spending or savings.

Despite the rising cost of housing in our state, the prevalence of homelessness has steadily declined since 2000, and 2015 was no exception to that positive trend. Delaware’s rate of homelessness is nearly half the national figure, and decreased by 23% since 2005.

While a small share of Delawareans receive public assistance, higher shares access government help such as Medicaid and food stamps. Less than 3% of state residents receive public assistance, while 20% are enrolled in Medicaid, the government health insurance program for low-income and disabled people. About 16% of state residents receive Supplemental Nutrition Assistance Program (SNAP) benefits, or food stamps – a dramatic increase from 4% in 2000. And 17% of Delawareans receive the Earned Income Tax Credit, which provides tax relief to people with low incomes. Delaware was comparable to similar regions and the nation on these measures.